WT/TPR/S/174 Trade Policy Review 
Page 50 
 
 
IV. ANALYSIS OF TRADE POLICIES AND PRACTICES BY SECTOR 
(1) INTRODUCTION  
1. The Chadian economy is largely based on agricu lture, including livestock rearing, and since 
2003, on petroleum.  An output of about 160,000 barrels a day made it possible to virtually double 
GDP in 2005-2006, given the record levels reached by world oil prices.  The Government is now 
giving priority to production sharing contracts, under which the State holds a capital stake in oil projects in order to maximize the benefits to the country.  However, since it has no refinery Chad 
exports the crude and import refined products, at their current exorbitant prices, further inflated by the 
country’s land-locked situation. 
2. The aim of food security, an integral part of agricultural policy, goes hand-in-hand with the 
strategy to combat poverty and malnutrition.  Ye t much of the budget earmarked for agriculture is 
used to support the monopoly State enterprise in th e cotton sector.  In addition, agricultural exports 
and imports are subject to heavy official and info rmal taxes, which are a disincentive to private 
investment.  This is encouraging the informal e xportation of cattle, which is Chad's second source of 
foreign exchange earnings after petroleum.  Besi des, internal organization and the international 
environment are negatively impacting the cotton sector , which has been in crisis for some years now. 
3. Manufacturing is an infant industry;  it comprises mainly companies in the agri-food sector, 
which caters principally for the local market give n the limited competitiveness (for numerous reasons) 
of its products, as well as the limited capacities of manufacturing companies.  Despite the lack or 
insufficiency of local production of mass consumption manufactures, including staples, such products 
are still subject to a high degree of protection mainly through import duties inherited from the 
CAEMC common external tariff (CET), a situation th at further diminishes the population's purchasing 
power. 
4. There is an inadequate supply of key basic services such as water, electricity, and fixed 
telecommunications and postal services, which is ha mpering the performance of the remainder of the 
economy.  Nevertheless, the main routes of communi cation are gradually bein g refurbished and made 
secure thanks to oil resources.  Chad's commitm ents under the WTO General Agreement on Trade in 
Services (GATS) are limited to tourism services and do not reflect the opening up of a wide range of 
the sector's activities to foreign providers. 
(2) A
GRICULTURE , LIVESTOCK , FISHERIES AND FORESTRY  
(i) Overview 
1. Agriculture, including related activities (livestock farming, fisheries, and forestry), employs 
three-quarters of the workforce and, before oil production began in 2003, accounted for more than 
one-third of GDP (Table I.1), generating some 85 per cent of export earnings.1  Yet food security, one 
of the key objectives of agricultural policy, is far from a reality.2  The isolation of many settlements 
and the high cost of transporting food products to th ese areas because of the in adequacy of transport 
infrastructure are major constraints.  Generally speaking, trade is hampered by numerous obstacles 
including regulatory constraints, which are also limiting the ability of producers to export their agricultural produce and increase their earnings. 
                                                     
 
1 FAO data.  Consulted at:  http://www.fao.org/a g/agl/aglw/aquastat/countries/chad/indexfra.stm. 
2 FEWS NET (2006). Chad WT/TPR/S/174 
 Page 51 
 
 
2. There are considerable land and water resources available for developing Chad's agriculture, 
but successful water management is the overriding ch allenge.  At present, of the 39 million hectares 
of arable land in Chad, 5.4 million are potentially irrigable, and 373,000 easily irrigable, owing to 
their proximity to rivers.  Only 2 million h ectares are under cultivation, and 30,000 hectares are 
irrigated.  The cost of irrigating 1 hectare of land is about CFAF 8 million (over €12,000), which is 
beyond the reach of small farmers. 
3. Chad’s Saharan zone has limited agricultural poten tial but is suited to date palm cultivation.  
The production system is agro-pastoral in the Sahe lian zone, where cereal growing (mainly millet) 
and oilseed production exist side-by-side with livest ock rearing.  The drought that has plagued this 
climatic region over recent decades has caused a shar p contraction in agricultural output, especially of 
groundnuts.  All the other types of cultivation are practised in the Sudanian zone, where cotton is the main crop.  Animal products are important income an d growth niches.  Table IV.1 offers an overview 
of production.  The available statistics show that  the main agricultural products have fluctuated 
considerably in recent years, though the main cereals have shown an uptrend.  The chief imports are sugar (until 2005, see Chapter III(2)(v)), wheat flour, and the other food products. 
Table IV.1 
Main agricultural products, 1998-2005 
('000 tonnes) 
 1998 1999 2000 2001 2002 2003 2004 2005 
Total imports 
 Refined sugar  29,150  15,100  25,625  25,891  41,213  54,656  45,952  .. 
 Wheat flour  26,000  36,000  36,400  36,110  41,229  45,406  30,000  .. 
 Food preparations, n.e.s.  400  3,150  930  780  1,051  1,172  1,070  .. 
 Dry whole cow's milk  ..  570  570  600  344  1,822  600  .. 
 Maize (corn) flour  ..  ..  3,500  4,200  3,110  4,090  8,120  .. 
 Vegetable fats and oils, n.e.s.  534  ..  ..  ..  ..  ..  2,420  .. 
 Sorghum  ..  ..  ..  ..  ..  ..  12,150  .. 
 Polished rice  ..  ..  ..  ..  ..  ..  5,030  .. 
Production 
 Sorghum  514  457  372  472  457  537  427  554 
 Pearl millet  357  361  246  378  340  491  279  549 
 Berebere  ..  ..  166  113  195  158  273  252 
 Maize (corn)  180  94  61  100  80  112  104  191 
 Groundnuts  471  372  341  426  361  394  366  462 
 Shea  ..  ..  41  43  45  47  50  52 
 Sugarcane and sugar plants, 
n.e.s.  295  277  301  314  335  267  280  343 
 Cassava  292  323  230  289  308  332  59  65 
 Yams  240  230  230  230  230  230  230  230 
 Fresh whole milk 
(million litres)  ..  ..  327  335  343  351  360  369 
 Cotton seeds  86  99  143  165  178  102  200  215 
 Gum Arabic  ..  ..  13  13  11  12  12  13 
.. Not available. 
n.e.s. Not elsewhere specified. 
Source : FAO, information online.  Consulted at:  http://www.fao. org/es/ess/toptrade/trade.asp and http://fao stat.fao.org/ 
site/340/default.aspx; and data s upplied by the Chadian authorities. 
4. Chad's agricultural sector generally suffers fro m very low productivity.  The average yield 
from food and cash crops is believed to be lower th an in the neighbouring countries.  Owing to the 
lack of proper water management, the sector is he avily dependent on the vagaries of the weather.  
This means that over 80 per cent of cereal crops  and all of the area under cotton cultivation are 
rain-fed.  The level of mechanization and use of inpu ts is very low.  Because of the number of trade 
barriers (Section (ii) below), a significant part of agricultural trade remains informal.3  Over and 
                                                      
3 World Bank (2004). WT/TPR/S/174 Trade Policy Review 
Page 52 
 
 
above these internal drawbacks, th ere are major distortions in the world's markets for agricultural 
produce, including the cotton market (Section (iii) below). 
(ii) Agricultural policy 
5. The ministries with responsibility for agricultu re, livestock, the environment and fisheries are 
the three main government players in the sector.  In the Government's Political Programme, as in the 
framework of the National Poverty Reduction Strate gy (SNRP, see Chapter I(1)), rural development 
has been recognized as a priority. Under the Pr ogramme, "substantial amounts" from oil mining and 
from external aid are to be redistributed to rural areas.4 
6. The Government has declared th at the agricultural sector must ensure economic development 
and food security.  As emerges from numerous reports and successive plans to revitalize the sector, 
the aim of Chad's agricultural policy is to produce mo re and better so as to raise the standard of living 
of its people and stem poverty.5  The announced activities are intended to modernize agricultural 
production (including livestock), promote agri-f ood processing units, institute effective water 
management to limit dependence on the weather, and combat the factors that undermine crops.  Since 
2003, the Government has been devoting some part of  oil revenues to the rehabilitation of rural roads 
and tracks so as to open up the countryside and f acilitate the trade in farm produce as well as bring 
food aid to the poor.  In 2006, the Ministry of Agricu lture set as its main objective to bring irrigation 
to 100,000 hectares by 2015.  Its 2006 budget w as CFAF 42 billion, including 17 billion in subsidies 
to Cotontchad (Section (iii)(b) below). 
7. Up to now, the heavy taxation of imports and exports of agricultural goods has hampered the 
harmonious functioning of food markets in Chad.  Yet,  as confirmed in a recent assessment of the role 
of international trade in the food situation in the Sahel, cross-border trade and local cereal markets are 
playing a crucial role in supplying areas in  short supply and in reducing food insecurity.6  T h e  
unfettered functioning of this trade, as well as optimum supplies to these markets are therefore essential to ensuring greater availability of food pr oducts.  According to the ISIC definition, the 
simple average of the import duty (DDI) applied to the agricultural sector (including livestock, 
fisheries and forestry) is 23.2 per cent (Table AI V.1).  The average of all duties and taxes applied 
exclusively to agricultural imports is 27.5 per cent.  VAT of 18 per cent is levied on imports of all 
agricultural products, except wheat flour, meat and da iry products (Chapter III(2)(ii)).  These duties 
and taxes, in combination with protracted and co mplicated customs procedures, are further increasing 
the cost of these goods, including that of food staples. 
8. Agricultural exports too are subject to a series of  taxes (Chapter III(3)(ii)).  According to the 
authorities, export duties (DDE) have been abolishe d for agricultural produce.  They are still being 
levied, however, on livestock, fish and animal produc ts, including furskins.  Agricultural exports are 
also subject to five other exports taxes:  the st atistical tax (2 per cent), research tax (TRC, 0.5 per 
cent), and the inspection and packaging tax (TCC,  0.5 per cent), the Community preference tax 
(0.4 per cent) and the rural export fund tax (1 or 2 per cent).  The cumulation of export duties and 
taxes is highest on cattle (Section (iii)(a) below).  These taxes are affecting the export competitiveness 
of the products concerned a nd are discouraging production. 
9. The National Office for Rural Development (OND R) is the quasi-State body that implements 
agricultural development programmes.  It is mainly  responsible for support and extension activities in 
                                                     
 
4 "Programme politique du Gouvernement du 3 février 2005".  Consulted at:  http://www.primature-
tchad.org/PROGRAMMEPOLITIQUE.pdf. 
5 See, in particular, Ministry of Agriculture (2005a, 2005b and 2005c). 
6 World Food Programme (2006). Chad WT/TPR/S/174 
 Page 53 
 
 
the agricultural sphere.  The Lake Chad Deve lopment Company (SODELAC) is a State-owned 
company that is involved in production. SODELA C manages Lake Chad agricultural development 
projects.  In the light of the chronic shortage of  cereals, the Action Committee for Food Security and 
Crisis Management (CASAGC), under the auspices of  the Ministry of Agriculture, makes price and 
cereal harvest projections in conjunction with th e food aid agencies (e.g. the FAO, the Permanent 
Interstate Committee for Drought Control in the Sa hel (CILSS), the Famine Early Warning Systems 
Network (FEWS)), and estimates import needs in the framework of early warning systems.  Food aid was 62,400 tonnes in 2005. 
10. The National Food Security Office (ONASA) was created in 2001 from the merger of the 
Rural Intervention Fund (FIR) and the National Ce reals Office (ONC) in order to improve food 
security.
7  ONASA's mission is to maintain food security stocks of 35,000 tonnes so as to intervene in 
the event of shortages and ensure price stability .  ONASA buys and sells food products on the local 
market, but also turns to imports if necessary.  It is run by an equi-representational monitoring 
committee comprised, inter alia , of the ministries responsible for agriculture and finance, along with 
five representatives of donor countries and agenci es involved in the building up of food security 
stocks.8 
(iii) Policy by sector 
(a) Livestock farming and its by-products 
11. Livestock farming is of the highest importance in  Chad.  For the most part, it is transhumance 
livestock rearing.  The gradual loss of traditional p asturelands owing to drought and urbanization is 
driving livestock farmers increasingly toward regions  devoted to cultivation.  The result is frequent 
clashes between sedentary farmers and transhumant cattle farmers.  Unlike other Sahel countries, 
cottonseed cake and sugarcane molasses are hardly u sed as feedstuffs, given their relatively high cost.  
Yet Chad is perhaps the largest exporter of live cattle in Central Africa.  The herd is estimated at over 
16 million, all categories taken together (Table IV.2).   Although livestock is marketed largely outside 
the formal channels, trade consists mostly of e xportation to neighbouring countries such as Cameroon 
and Nigeria, worth over €200 million per year and re presenting Chad's leading non-petroleum export.  
The population groups involved are economically vulnerable, a fact that underscores the importance of an appropriate trade policy for the sector, as part of the fight against poverty. 
Table IV.2 
Chadian herd, 2003 
('000 head) 
Zone Bovine 
animals Sheep Goats Equine 
animals Asses Camels Pigs Total 
Saharan  1  119  72  2  11  244  0  449 
Sahelian  5,139  1,906  4,482  321  368  942  1  13,159 
Sudanian  1,144  539  1,030  37  16  0  69  2,835 
Total  6,284  2,564  5,584  360  395  1,186  70  16,443 
Source : Data from the Minist ry of Livestock. 
12. Exports of cattle and livestock products are governed by a 1988 decree, which requires the 
exporter to obtain a trading licence from the Ministry of Finance.9  Each year the Ministry sets the 
level of export duties to be collected by the customs services.  The duty is currently set at CFAF 8,165 
                                                      
7 Law No. 002/PR/01 of 21 February 2001. 
8 See, in particular, FEWS NET (2006). 
9 Decree No. 138 bis/PR/MEPH/88 of 16 April 1988 regulating exports of cattle and livestock 
products. WT/TPR/S/174 Trade Policy Review 
Page 54 
 
 
per head of cattle, the average price of which is CFAF 200,000.  A statistical tax amounting to 2 per 
cent of the value of the exports is also levied.  The decree further prescribes that export cattle must be 
subject to a health examination (CFAF 2,100 per head).  All exports must be accompanied by an 
international zoo-sanitary certificate, issued  by the Livestock Management Service ( Service de 
l'élevage ):  it costs CFAF 2,500 for the entire herd be ing exported.  Meat exports are also taxed 
(CFAF 5 per kg).  Illegal levies are also reportedl y being made by a large number of players (local 
authorities, postes de brigade , customs officers, gardes nomades , checkpoint guards and other 
inspectors).  Altogether they are believed to account  for more than half the producer price of cattle, 
which is a disincentive to the development of the industry.10 
13. At present, the livestock products processing s ector comprises one main slaughterhouse in 
N'Djamena, which is State-owned but ma naged by a private Chadian company ( Société moderne des 
abattoirs/Abattoirs frigorifiques de Farcha );  there is also a privately managed slaughterhouse in 
Sahr, as well as regional slaughterhouses managed by the Ministry of Livestock in each of the principal towns.  According to the authorities, Ch ad's slaughterhouses are currently profitable;  the 
sector's export problems are related to the high cost of air transport;  equipment and sanitary 
inspection procedures reportedly conf orm to international standards. 
14. The importation of live animals and meat is extremely limited.  The import duty on meat 
averages 21.2 per cent, the total of the MFN tari ff and other taxes on meat products amounts to 26.2 
per cent on average (Table AIV.1), in addition to wh ich there is an 18 per cent VAT.  All these taxes 
increase the c.i.f. value of these products by one third.   Chad has no dairy industry.  Imports of such 
products, mainly from the European Union, are subj ect to an average import duty of 25.5 per cent, 
total taxes averaging 31.2 per cent. 
15. The hides and skins industry is still largely a cottage industry and the output is largely 
marketed and exported outside formal channels.  The export tax is CFAF 10 per unit of leather 
(CFAF 5 per unit of skin), plus the cost of the san itary inspection and certificate.  The inspection and 
packaging tax (TCC) is 0.5 per cent of the c.i.f. export value and is levied on hides and skins. 
(b) Cotton 
16. Cotton is the second most important export produc t after petroleum, since cattle exports for 
the most part take place outside formal channels .  Chad produces seed cotton and cotton fibre in the 
factories run by the Société cotonnière du Tchad  (Cotontchad), the country's cotton company, in 
which the State has a 75 per cent stake.  The company has monopolies on the purchase of seed cotton 
from the producers, on ginning and marketing, including exports. 
17. Since 1997, the sector has been in deep crisis  and, having started the 1970s as the leading 
producer among the countries in the franc zone, Chad  is now one of smallest.  Many factors have 
contributed to this crisis:  the high cost of imports  and equipment, which has limited their use;  the 
low level of producer purchase prices;  the inefficien cy of the government company in charge of the 
sector;  the dilapidated state of the road network;  the cost of energy;  the weakness of farmers 
organizations;  and as of 1998, pl ummeting international cotton prices (Chart IV.1).  The sector's 
performance contrasts with those of neighbouring co untries such as Mali and Burkina Faso, where the 
cotton sector is based on a similar model, but wher e production has been less hard-hit by the crisis.
11 
                                                      
10 International Trade Centre and Agence intergouvernementale de La Francophonie 
(Intergovernmental Francophone Agency) (2004). 
11 See WTO (2004). Chad WT/TPR/S/174 
 Page 55 
 
 
 
0 50 100 150 200 250 300 350 400 450 500 
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005Chart IV.1  
New York cotton price, 1995-2005 
Source :  BEAC (2005),  Études et Statistiques , No. 296, June. 
 Cents per pound  CFAF per pound
 
 
18. Cotontchad grants input credit to village associ ations for the production of seed cotton, which 
it then buys from the planters.  The latter are normally paid at the time of sale to the company.  With 
the crisis, however, payments to the planters have fallen into arrears.  At present, the price of seed 
cotton is generally set in the month of May by an  equi-representational committee comprised of three 
farmers and three members of Cotontchad, assisted by two government representatives.  The price is 
set on the basis of a formula devised in 1997 and revi sed in 2000.  It involves a coefficient of 19.3 per 
cent representing the seed cotton producer's share in  the index of average world cotton fibre prices 
over 16 months (January to April of the following year), and a valuation of the cotton seed (CFAF 
5 per kg).12  If at the end of the season the price projected  using the formula and paid to producers is 
lower than that which they should have received if th e actual sale prices had been used, they are paid 
a differential price.  If the actual selling price is lo wer, Cotontchad bears the difference.  It receives 
State subsidies for that purpose.13  The Government also grants subsidies to Cotontchad for the 
purchase of inputs and as government guarantees for bank loans to the company. 
 The decline of international cotton prices si nce 1995 has resulted in considerable income 
losses for Chadian producers (Table IV.3).  This do wnward trend has been partly the result of the 
increased supply of cotton on world markets owing to production and export subsidies, and of 
competition from synthetic products.  To safeguard its commercial interests, Chad reserved its third 
party rights in connection with the Brazilian comp laint concerning United States cotton subsidies 
(Chapter II(5)(i)).  Besides, in December 1999, a strategy was adopted by Government decree for 
reforming the sector, chiefly so as to raise farmers'  earnings.  The strategy was designed to increase 
the bargaining power of producers, by (i) strengthe ning the role of growers' associations;  and 
                                                      
12 Ministry of Planning, Development and Cooperation (2003b). 
13 "Compte-rendu analytique de l'Assemblée nationale " (Summary Record of the National Assembly).  
Consulted at:  http://www.tchad-gpmps.org/compterendu07-071205.html. WT/TPR/S/174 Trade Policy Review 
Page 56 
 
 
(ii) divesting government interests in the cotton sector, including in Cotontchad.  Yet a 2004 report 
states that for financial reasons, most of the recommendations made have remained a dead letter.14  
According to the authorities, a road map for the refo rm of the cotton sector is being implemented.  
Since 2004, official statistics have been showing a recovery in seed cotton and cotton fibre output. 
 
Table IV.3 
The cotton sector, 1993, 1995, 2000-2006 
 1993 1995 2000 2001 2002 2003 2004 2005 2006 
Seed cotton output 
('000 tonnes)  94.9  157.7  143.0  164.5  168. 6  102.2  207.5  200.0  206.0 
Producer price (CFAF/kg)  90.0  170.0  183. 0  164.0  167.0  158.6  187.0  156.8  156.8 
Yield (kg/ha)  615  759  601  538  595  721 .. .. .. 
Cotton fibre exports 
('000 tonnes)  43.0  67.2  68.7  55.6  60. 4  62.3  63.2  68.2  79.5 
Export price of cotton fibre (CFAF/kg)  336.0  948.0  736.8 1,023.7  643.1  723.4  707.0  619.2  640.1 
World price, Cotlook A index 
(cents/pound)  58.0  98.3  59.1  48.0  46. 3  63.4  62.0  53.0  55.0 
Cotontchad net result 
(CFAF billion)  -5.4  15.1  -6.9  -10.2  -7.5 .. .. .. .. 
.. Not available. 
Source : BEAC and Cotontchad. 
(c) Food products 
19. The cereal varieties grown in Chad are mainly millet and sorghum; also cultivated are rice, 
maize/corn, wheat and berebere (a millet variety).  Output varies from year to year, as the crops are highly rainfall-dependent.  Cereal output is generally consumed loca lly.  Import duty on cereals varies 
between 20 and 30 per cent, to which must be adde d all the remaining taxes and charges, as well as 
VAT. 
20.
 The Office de mise en valeur de Sategui-Déressia  (Sategui-Déressia Development Board), 
which once managed two rice mills, has been dissolved .  Husking of the rice produced by farmers is 
currently done on a small-scale, private basis.  The Grands moulins du Tchad  (milling plants), which 
had a capacity of 24,000 tonnes of flour in the 19 70s, are now closed.  The import duty on milled 
products averages 21.8 per cent (Table AIV.1) and 30  per cent on biscuits and other bakery products;  
the cumulation of MFN duties and taxes on imports alone averages 24.8 per cent and 33.0 per cent 
respectively.  In addition, there is an 18 per cent VAT.  The main import is wheat flour, mostly in the 
form of food aid; it is the only VAT-exempt cereal product. 
21. Oil is produced from cottonseed, groundnuts, sesa me seed, shea nuts, pumpkin seeds, and 
soybean, amongst other sources.  This branch of i ndustry comprises mainly the Cotontchad oil mills, 
which had a capacity of 180 tonnes per day in th e 1980s.  That facility also included an oil-cake 
pelletization plant.  As part of the reform of the cotton sector, the Government has announced its 
withdrawal from the activities of Cotontchad's Direction de l'huilerie savonnerie –- DHS (oil and 
soap-making division);  the DHS was privatized in 2003, then renationalized in 2006.15  The other oils 
(groundnut and sesame) are produced mainly on a small scale. 
22. Chad also produces fruit and vegetables, of wh ich the only ones currently being exported in 
small quantities are sorrel flower – derived from a hi biscus – and onions.  Apart from certain forms of 
                                                      
14 Cotontchad (2004). 
15 Decree No. 249/PR/PM/MF/06 transferring 7,500 government shares.  See also Gondjé (2004). Chad WT/TPR/S/174 
 Page 57 
 
 
processing at the places of consumption (fruit juices and dried tomatoes), the sector is hampered by 
the lack of processing units capable of adding value to any production surpluses.  The import duty and total customs charges on imports of preserved ve getables are respectively 30 and 32.4 per cent on 
average (Table AIV.1). 
23.
 The Compagnie sucrière du Tchad – CST (Chad sugar company) is one of the country's main 
manufacturing enterprises.  It was privatized in 2000, and sold to SOMDIAA, a company with French 
capital that controls the bulk of sugar production in Chad, Cameroon and the Congo.  The CST sugar 
output for 2006 was 36,000 tonnes, derived from sugar cane plantations covering 3,750 hectares.  This 
met some 40 per cent of domestic needs, the diffe rence being supplied through imports.  Yet sugar 
imports are currently being restricted (Chapter III(2)(v )).  The CST plans to raise its output to 50,000 
tonnes by 2010.  The import duty on sugar is 30 per cent, and the additional temporary tax of 20 per 
cent levied on that product alone has been suspended since 2004. 
(d) Fisheries 
24. Some 300,000 people engage in fishing on Lake  Chad and on the Chari and Logone rivers.  
The annual catch varies with rainfall, and is now  estimated to average 80,000 tonnes per year 
compared to 140,000 tonnes per year during the 1960s when Lake Chad was much bigger. 
25. The fisheries subsector is considered to have developed autonom ously thanks to its 
comparative advantages, with no government interv ention whatsoever.  Some 80 per cent of the catch 
from Lake Chad is marketed, and the rest is cons umed by the fisherfolk themselves.  Roughly 10 per 
cent of what is sold goes to Chadian markets – mainly in N'Djamena since an asphalted road was 
built – and the rest is salted and sm oked and exported to urban centres in  southern Nigeria.  The trade 
channels are informal and dominated by local middlemen whose profit margins are substantial.16  
Estimated export earnings are in excess of US$50 million per year (official export figures for 2004 
were US$3,539).  Chad is not on the list of countries  deemed to satisfy the conditions for recognition 
of equivalence with the sanitary  regulations in force in the EU for the importation of fishery 
products.17  The average import duty levied on fishery products is 24.8 per cent, with rates ranging 
from 10 to 30 per cent (Table AIV.1).  However, impor t duties and charges altogether give an average 
rate of tariff protection of 30.1 per cent. 
26. The production of spirulina – variety of blue algae that occurs in significant concentrations in 
Lake Chad – is still embryonic, though growing worl d demand augurs well for the future.  Spirulina is 
a significant source of protein to combat malnutrition and is also used in the treatment of cancer and 
diseases of the immune system. 
(e) Forestry products 
27. Chad's forest cover is estimated at 23,000,000 hectares18, consisting mainly of natural forests 
that account for the bulk of timber production.  Chad  has some 15,000 hectares of planted forests, 
which is little when compared with othe r countries with similar forest cover.19  The current planting 
rate (estimated at 300 hectares/year) is not sufficient to replace all the trees fe lled to meet the demand 
for fuel and industrial wood.  Given the high rate of population growth, the forestry subsector is 
                                                      
16 World Bank (2004). 
17 "Third Country Establishments' Lists/Listes d'Étab lissements des Pays Tiers:  Country Selector".  
Consulted at:  http://forum.europa.eu.int/irc/sanco/ve ts/info/data/listes/list_all.html#C [21 July 2006]. 
18 The data in this section are based mainly on research published by the FAO.  Consulted at:  
http://www.fao.org/DOCREP/004/AB579F/AB579F04.htm. 
19 WTO (2006). WT/TPR/S/174 Trade Policy Review 
Page 58 
 
 
facing increasing competition for land from the food sector.  The result is that forest cover is 
shrinking. 
28. A new Forestry Code introduced in 1999 enab les government authorities to control the use of 
forest resources, and grants specif ic ownership rights to individuals  who regenerate forested areas.20  
The Code is based on two principles:  transferri ng responsibility for the management of natural 
resources to the local population, and reorienti ng the role of government.  The new legal and 
institutional framework is enshrined in the Natio nal Plan for Desertification Control (PNLCD) 
adopted in 1999.  Yet neither the PNLCD nor the Fore stry Code is being impl emented:  the first for 
lack of funds, and in the case of the second, no  implementing regulations have been drawn up. 
29. Consumers are supplied with very low-cost w ood, given the low value of standing timber.  
Besides, stumpage charges and other taxes on wood fu els are negligible, as cutting is mostly informal 
and they are rarely collected.  The absence of fo rest wardens limits the capacity for monitoring and 
managing forest resources. 
30. Chad currently imports most of its indus trial wood from the Central African Republic, 
Cameroon and Gabon, despite having this type of wo od within a perimeter of less than 10 kilometres 
around the capital, according to the FAO.  The averag e MFN tariff protection for forestry activities is 
30 per cent (Table AIV.1), and 33 per cent when all other import charges are added. 
31. The other main forestry products and species e xploited in Chad are:  gum Arabic, shea nuts, 
balanites, zyzyphus, néré seeds and tamarind.  Gum Ar abic is harvested mainly  in the Sahelian region 
from 39 million hectares of acacia forests.  Chadian gu m is marketed exclusively by private operators, 
who handle all stages from production to export ation.  The annual average output is around 
19,000 tonnes.21  Chad accounts for about one quarter of wo rld output (for which there is a structural 
surplus in demand) and is the world's second largest producer after Sudan.  This subsector therefore 
enjoys appreciable growth potential.  Official  exports doubled in value between 2004 and 2005 to 
some CFAF 20 billion (€25 million).  Promotion m easures could include the dismantling of export 
duties and taxes (export duty, statistical tax and inspection and packaging tax), which altogether 
amount to 7.5 per cent. 
(3) MINING , ENERGY AND WATER  
32. Since 2004, crude oil has been the country's most valuable export.  Yet it is not yet being used 
locally for energy purposes, and wood fuels (firewood, charcoal) are the main source of energy in Chad.  Household consumption of modern fuels is  low and practically nonexistent in rural areas. 
33.
 The Ministry of Mining and Energy is responsib le for all mining and energy-related as well as 
water supply activities.  This does not, however, in clude petroleum-related activities, which fall under 
the Ministry of Petroleum, or rural water supplies, which are the purview of the Ministry for Pastoral 
and Village Water Resources.22  Chad has made no commitments in respect of mining, water and 
energy-related services under the General Agreement on Trade in Services (GATS).23  M i n e r a l  
prospecting, exploration and expl oitation have, so far, generally been open to private Chadian or 
foreign companies.  Water supplies and electricity  generation and distribution on the other hand are 
controlled by a State-owned company in some parts of the country. 
                                                      
20 Law No. 36/PR/94. 
21 Gum Arabic is used mainly as a food emulsifier.  Its food code is E414. 
22 Chad Government site, information online.  Consulted at:  http://www.primature-tchad.org/gvt.php. 
23 WTO document GATS/SC/87, 15 April 1994. Chad WT/TPR/S/174 
 Page 59 
 
 
(i) Petroleum products 
34. In 2002, Chad's proven hydrocarbons oil re serves were estimated at over 900 million 
barrels.24  In October 2003, the Projet pétrolier et d'oléoduc Tchad-Cameroun  (Chad-Cameroon 
Petroleum Development and Pipeline Project), base d on the Doba oilfield (hereinafter "Doba oil 
Project"), recorded its first sales, thereby becomi ng Chad's first significant oil production operation.  
The Project also includes the building of a 1,017-k ilometre oil pipeline linking the Doba oil fields 
with Kribi on Cameroon's Atlantic coast;  it also  includes three interconnected pumping stations, 
infrastructure improvements, notably a fibre-optic cable (Section (5)(iv) below), and the construction 
of offshore oil transfer facilities.  Under th is Project, oil exports for 2005 generated some 
US$2 billion in revenue;  in 2005, total transfers to  the State in the form of oil export revenue 
amounted to US$342 million.25 
35. Hydrocarbons prospecting, exploration, exploitati on, storage and transportation to the point of 
shipment are governed by a 1962 ordinance, as amended by a law adopted in 1997.26  U n d e r  t h e  
ordinance, prospecting is subject either to the gr anting of a prospecting permit, which gives no right 
of exploitation or appropriation of any minerals found;  or to an exclusive exploration permit 
("H permit", valid for five years and renewable twic e), which empowers its holder to use any products 
found.  These two permits are granted by decree.  Exploitation is based on a concession, which by law 
is valid for 50 years, though negotiable in practice (the Doba Project Concession is for 35 years).  The 
agreement annexed to the concession (concession agreem ent) lays out the legal, financial, fiscal and 
social terms and conditions for the validity of th e concession.  Operators may be required to supply 
Chad and other countries in the fra nc zone as a matter of priority. 
36. Under the ordinance, companies holding oil permits must pay a royalty fee stated as a 
percentage of the value ex-deposit of products mine d;  it is 12.5 per cent on liquid hydrocarbons, and 
5 per cent on gaseous hydrocarbons (Article 63).  They are also subject to a 50 per cent tax on net 
profits made in Chad (Article 65);  in practice, however, the rate of the profit tax may be negotiated 
when the agreement is concluded.  An amount of  CFAF 3 per exported barrel is levied by the 
Chamber of Commerce, Industry, Agriculture, Mini ng and Crafts (CCIAMA) for the issuance of the 
certificate of origin. 
37. The Doba Oil Project is the outcome of a part nership between the Governments of Chad and 
Cameroon, the World Bank, the International Fina nce Corporation, and a consortium of private 
developers.  The Project's terms and conditions ar e laid out in the amended 1988 Agreement on the 
exploration, exploitation and transportation of hydr ocarbons, which specifically prescribes the fiscal 
conditions for the operation of the Consortium.27  The 1988 Agreement also covers the deposits in the 
Doseo and Lake Chad basins.  The 1999 Law on th e management of oil revenue governs the use of 
funds derived from the Project for the purposes of combating poverty (Box I.1).28 
                                                      
24 World Bank estimates, see IBRD and International Development Association (2002). 
25 See World Bank, information online.  Consulted at:  http://www.worldbank.org. 
26 Ordinance No. 007/PC/TP/MH of 3 February 1962 regarding hydrocarbons exploration, exploitation 
and pipeline transportation and the regime for such activities on the territory of the Republic of Chad, as 
amended by Law No. 004/PR/97 of 23 July 1997;  the ordinance as amended by the law constitutes the 
Petroleum Code. 
27 The Agreement was approved through Ordinance No. 041/PR/88 of 30 December 1988, as amended 
by Decree No. 145/PR/MMEP/2000 dated 7 April 2000, governing the transfer of the rights and obligations of 
Shell and Elf to Petronas and Chevron. 
28 Law No. 001/PR/99 on the management of oil revenue. WT/TPR/S/174 Trade Policy Review 
Page 60 
 
 
38. In January 2006, Esso Exploration and Pro duction Chad Inc. (EEPCI), a fully owned 
subsidiary of Exxon Mobil, was coordinating the en tire project, in which it held a 40 per cent capital 
stake;  Petronas had a 35 per cent stake, and Chev ron the remainder.  The Chad Oil Transportation 
Company (TOTCO)29 and the Cameroon Oil Transportati on Company (COTCO) own and operate, 
respectively, the Chadian and Cameroonian portions of  the system of exportation.  The Chadian State 
holds an 8.04 per cent capital stake in TOTCO;  COTCO is 2.73 per cent owne d by Chad and 5.17 per 
cent is owned by the Cameroonian Government.  Th e project is producing 150,000-170,000 barrels of 
crude per day. 
39. Another concession agreement was signed in 1999  with Encana, a company based in Canada, 
covering the Erdis, Lake Chad and Chari basins.  Th e project is now at the exploration stage.  In 
January 2006, the Government also signed an oil production sharing agreement with the OPIC Africa 
Company, a subsidiary of the Chinese Petroleum Cor poration.  In addition to  the 12.5 per cent royalty 
fee on production and the 50 per cent tax on profits, th is agreement foresees a 30 per cent capital stake 
in the project for the Chadian State.30  The exclusive exploration licence,  which is also dealt with in 
the agreement, covers 26,250 square kilometres in three zones (in the Lake Chad, Southern Chari and 
Western Chari regions).  The authorities have indicated  that in future, Chad will be giving preference 
to production sharing agreements, inter alia  so as to benefit fully from the transfer of technology. 
40. A new State-owned enterprise, the Société des hydrocarbures du Tchad  (Chad Hydrocarbons 
Company)31 was created in July 2006 to act on behalf of  the State in petroleum-related activities in 
Chad (including the exploration, production and marketing of hydrocarbons and petroleum products, 
and the negotiation of oil contracts).  As at Oct ober 2006, the company's arti cles of association had 
not been finalized and the company was not yet in operation. 
41. A National Commission for the Negotiation of Pe troleum Agreements (CNRCP) was created 
in August 2006 by presidential decree.  Its task is to renegotiate existing petroleum contracts.32  The 
CNRCP is under the supervision of the Prime Minist er, to whom it reports regularly on the various 
stages of negotiations. 
42. There is currently no oil refining activity in Chad.  The country is entirely dependent on 
imports from Nigeria, Cameroon and other neighbour ing countries.  Petroleum products are imported 
by road, and supplies are erratic.  Tamoil and Tota l, which have storage facilities, provide some 
35 per cent of imports (mostly from Cameroon and Nigeria).  About a dozen private Chadian importers also supply a substantial part of imports of refined petr oleum products.  Retail distribution 
is largely in the hands of informal operators.  Sin ce the liberalization of trade in petroleum products in 
2002, distribution companies have been free to set sale prices.
33  Total and Tamoil are the only 
suppliers of jet A1, at a relatively high price. 
                                                      
29 Establishment Agreement, signed on 10 July 1998 by the Republic of Chad and the Chad Oil 
Transportation Company S.A. (TOTCO), approved by Law No. 015/PR/98, as amended. 
30 Decree approving the Agreement on hydrocarbons exploration, exportation and transportation, 
between the Republic of Chad and the consortium comprised of OPIC A frica, a subsidiary of the Chinese 
Petroleum Corporation (Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu) and the Republic 
of Chad, 25 January 2006;  and decree granting an exclusive permit for the exploration of liquid and gaseous 
hydrocarbons to the consortium comprised of OPIC Africa and the Republic of Chad. 
31 Law establishing the Société des hydrocarbures du Tchad , dated 27 July 2006. 
32 See the decree establishing the National Commissi on for the Negotiation of Petroleum Agreements.  
Consulted at:  http://www.primature-tchad.org/?Journal/2006/08. 
33 Law No. 008/PR/2001 amending  Law No. 30 of 28 December 1968 81 on prices, economic 
intervention and the repression of economic offences. Chad WT/TPR/S/174 
 Page 61 
 
 
43. Imports of refined petroleum products are subject  to the following duties and taxes:  import 
duty, which averages 10.3 per cent, and othe r import levies and taxes (TCI and RS, see 
Chapter III(2)(ii));  on average, the cumulation amount s to 13.3 per cent (Table AIV.1).  In addition, 
there is the 18 per cent VAT, which means a total su rcharge of over 37 per cent attributable to duties 
and taxes.  The cost of kerosene and butane gas to  the consumer is reporte dly twice that of wood 
fuels. 
(ii) Mineral products 
44. Chad has gold, iron, bauxite, salt, natron, and ot her minerals that can be used in construction 
such as limestone, kaolin, marble and diatomites.  The mineral deposits currently being worked are 
alluvial gold (small-scale), natron, gravel and sand.34  SOTEC, which was born of the privatization of 
a government company in 1996, crushes and sells gr avel.  Some construction companies such as 
SATOM crush gravel for their own needs, subject to  a permit issued by the Ministry of Mining and 
Energy.  Imports of mining products are negligible.  The importation of minera l substances is subject 
to an average import duty of 11.4 per cent, a nd other import taxes (TCI and RS, see Chapter 
III(2)(ii)).  Import duties and taxes therefore amount to an average of 14.4 per cent (Table III.2).  In 
addition, there is an 18 per cent VAT.  The 25 per cent excise duty is levied on sales of pearls and 
diamonds (Table AIII.1). 
45. To encourage private investment in the mining sector, the authorities instituted a new Mining 
Code in 1995.35  The Code regulates prospecting, explora tion, exploitation, possession, transportation 
and processing of mineral or fossil substances, w ith the exception of liquid or gaseous hydrocarbons 
(Section (i) below).  Under Article 3 of the C ode, the State owns natural deposits and mineral 
substances contained in the nation's subsoil.  Mini ng permits are required to engage in prospecting, 
exploration and exploitation.  They include the pros pecting permit (valid for one year, renewable), the 
exploration permit (5 years, renewable twice);  and the operating permit (25 years, renewable 
indefinitely).  The granting of an exploration permit to a foreign company requires the prior conclusion of a mining agreement with the State.  Th e agreement lays down the legal, financial, fiscal 
and social prerequisites for the validity of the mi ning permit;  it may supplement the provisions of the 
Mining Code but may not derogate from them.  The agreement is valid for the entire period of 
exploitation, as appropriate.  To take effect, th e agreement must be appr oved by decree.  No 
agreement is currently being implemented. 
46.
 Holders of mining operation permits are subject  to one-off fixed charges in CFA francs, a 
royalty based on the surface area being worked of an amount in CFA francs per square kilometre and 
per year, and an extraction tax, the rate of wh ich varies depending on th e substances concerned.36  A 
mineral tax is levied on the sales of mining prod ucts.  The Mining Code provides for customs tariff 
exemptions, which may vary depending on the agre ement reached:  temporary admission of all 
equipment intended for mining activity;  exempt ion from all duties and taxes on consumables 
intended for the activity;  and exemption from all du ties and taxes on the personal effects of foreign 
employees, not including vehicles and aircraft fo r personal use.  Tax waivers on the earnings of 
                                                      
34 Ministry of the Environment and Water, and Un ited Nations Institute for Training and Research 
(2002). 
35 Law No. 011/PR/95 of 20 June 1995, instituting the Mining Code of the Republic of Chad, and its 
implementing decree No. 821/PR/MMEP/95. 
36 The fixed charges (see the Annex to the Code) include a prospecting permit for CFAF 100,000, an 
exploration permit worth CFAF 100,000, an operating licence for CFAF 2 million and a gold panning or 
operating licence worth CFAF 100,000.  The surface area ta xes include an exploration permit for CFAF 200 per 
square kilometre and per year, an operating permit wort h CFAF 100,000 per square kilometre and per year, and 
a gold panning and small mine operating permit for CFAF 5,000. WT/TPR/S/174 Trade Policy Review 
Page 62 
 
 
companies and natural persons are prescribed on a case-by-case basis in the mining agreement.  The 
agreement may also provide for a VAT-exempt regime  for goods (imported or of national origin), as 
well as for services directly provided as part of oil mining activities. 
47. The exportation of mining products requires authori zation, and may be subject to restrictions.  
There are no exports at present. 
(iii) Electricity 
48. At 30 megawatts (MW) in 2003, Chad's electric ity generation capacity is  negligible, and the 
absence of importation (demand is  met strictly from domestic production) is one of the major 
stumbling blocks to economic development.37  Output was 116 gigawatt/hour in 2005, from thermal 
sources only.  Only 2 per cent of households have  electricity, and power cuts are frequent.  Annual 
consumption averages a mere 11.3 kWh per pe rson;  the average figure is 600,000 kWh in 
industrialized countries. 
49. The law regulating the generation, transport a nd distribution of electricity dates back to 
1999.38  It enables the State to delegate the mana gement of these services to one or several 
independent legal entities under Chad ian public or private law.  This law also provides for a 
regulatory authority responsible for overseeing the app lication of the regulation, proposing the rates to 
the Government for approval, approving the multi- year investment programme, and approving the 
award of government contracts in the subsector. 
50. The Chadian Electricity and Water Company (STEE), a State enterprise, still holds the 
monopoly on the supply of water and electricity to certain towns in Chad, including N'Djamena.  The 
company is suffering from under-investment and is in  dire need of investment.  The STEE makes 
financial losses every year and receives subsidies from the regular government budget to offset them.  
It imports all its fuel (gas oil) by lorry from Cameroon;  gas oil accounts for 90 per cent of the company's operating costs.  In 2004, the Government announced its intention to privatize the management of electric power, to overhaul and incr ease the production capacity of the STEE, and to 
overhaul and expand the distribution infrastructure. 
 The sale prices of electric power are set by an  order issued by the Minister of Commerce.  
These prices are in principle identical throughout the territory.  They are among the highest in the 
world.  On 1 January 2005, the price per kWh (low tension) moved from CFAF 200 to CFAF 125, versus CFAF 63 in Cameroon, the equivalent of CFAF 20 in Nigeria, and CFAF 26-52 in France.
39  
There is no international trade in electric power in  Chad.  The Government plans to negotiate Chad-
Cameroon electricity interconnections. 
(iv) Water 
51. Access to water resources, including village and urban water resources, as  well as sanitation, 
are a vital prerequisite for the social and economic  advancement of Chad.  At the economic level, 
access to water is central to pastoral activities, which constitute one of the country's principal 
economic and commercial occupations.  Water is no less essential to agricultural activity, especially 
food production. 
                                                      
37 World Bank (2004). 
38 Law No. 014/PR/99 on the generation, transport and distribution of electricity. 
39 The cost of medium voltage electricity was CFAF 84 per kWh in 2005. Chad WT/TPR/S/174 
 Page 63 
 
 
52. Despite the often desert-like appearance of th e landscape, there are abundant water resources 
in the Sudanese and Sahelian regions.40  Yet very little (surface or e xploitable underground) resources 
are being tapped at present.  Under-utilization is due mainly to the scarcity of watering points and the 
high cost of drilling.  Chad's main producers of water are the Water Point Management Committees in 
settlements with drinking water supply systems (the rmal or solar), and the Chadian Electricity and 
Water Company (STEE).  Fountain builders and sta ndpipe managers act as intermediaries between 
network owners, on the one hand, a nd water carriers (retailers) and c onsumers that are not subscribed 
to any water network, on the other.  According to the Consumer Rights Association, the price of water 
is high, and ranges from about CFAF 500 to CFAF 1,750 (€0.76 to €2.67) per cubic metre, depending 
on whether the consumer is supplied by an STEE network or by a water carrier. 
53. In July 1998, the Chadian Government initiate d a reform of the public water production and 
distribution services.  Under the new 1999 Water Code, public supplies of drinking water must be 
provided in such a manner as to encourage private initiative as well as competition, and the provision 
of water is to be outsourced by the Governme nt to one or several independent operators.41  T h e  
charges for the public drinking water supply must cover all operating costs, including the operator's 
profit margin, the tax or rental for goods made av ailable to the operators, and any other government 
levies.  The operator must submit its rates to the Re gulatory Authority, which first approves then in 
turn submits them to the Government for approval.  Yet several decrees to implement this law have 
not been promulgated, and this is hampering the progr ess of the reform.  The fact is that water supply 
in several towns, including N'Djamena, is provided by the STEE operating as a monopoly. 
54. A decree issued in 2002 led to th e privatization of public sta ndpipes and put an end to free 
water supplies.42  The National Village Water Resources  Board was privatized and became the 
Chadian Water Resources Company.  The 2003 Master Plan for Water and Sanitation is the basis of a 
new government programme for the subsector.  It sets  out action plans and funding requirements up to 
2020 for the purposes of village, urban, semi-urb an, pastoral and agricultural water resource 
development.43  This policy, which calls for appreciable amounts of funding, has apparently made an 
impact, as the portion of the po pulation with permanent access to drinking water has grown from 
27 to 36 per cent.  Generally speaking, water res ources are still largely under-exploited, however, and 
there is the persisting problem of their availability. 
(4) MANUFACTURING SECTOR  
55. At the time of independence, the Government set up about a dozen State-controlled agri-food 
companies.  After the reforms carried out in the 1990s to scale back State involvement in production 
(Chapter III(4)(i)), several of those companies were closed down.  Others that managed to operate 
profitably were privatized. 
56. The currently operating processing subsectors ar e cattle slaughter and meat production, oil 
mills and sugar manufacturing from locally grown su garcane.  Two private companies are producing 
beer, lemonade and mineral water, namely Brasserie du Tchad  (formed from the merger of Brasserie 
du Logone , and Boissons et glacières du Tchad ), and the Lafico-Tchad  factory, a producer of mineral 
water.  This subsector also imports much of its  raw materials.  Apart from agri-food products, the 
                                                      
40 United Nations Department of Economic and Social Affairs.  Division for Sustainable Development 
(undated). 
41 Law No. 016/PR/99 of 18 August 1999 enacting the Water Code. 
42 Decree No. 249/PR/MEE/02. 
43 United Nations Department of Economic and Social Affairs.  Division for Sustainable Development 
(undated). WT/TPR/S/174 Trade Policy Review 
Page 64 
 
 
main manufactures are corrugated iron sheets, soap, pa per and bicycle assemblies (Table IV.4).  Two 
private companies are engaged in printing. 
Table IV.4 
Manufacturing output, 1993-2005 
Products 1993 1994 1995 1996 1997 2000 2001 2002 2003 2004 2005 
Beer (thousand hectolitres) 115.7 107.5 101. 6 133.6 123.2  78  96  124  110  84  92 
Aerated beverages 
(thousand hectolitres)  35.2  25.7  29.2  27.3  36.5  55  67  76  84  87  118 
Cigarettes (million packs)  24.9  25.4  28. 5  35.7  39.3  30  30  36  37  40  45 
Cotton fibre (thousand tonnes)  47.2  37.1  67.2  69.1  87.7  75  58  67  68  42  82 
Water (million m3)  10.2  10.3  9.6  10.5  11.0  13.0  14.0  14.0  15.0  16.0  18.0 
Gravel (million m3) .. .. .. .. ..  190  213  256  339  202  529 
Oil (million litres)  9.9  8.4  11.7  12.5  14.1  10  8  9  10  7  4 
Paper (tonnes) .. .. 137.8 122.5 114.0  369  410  454  522  605  703 
Paints (tonnes) 360.0 373.2 488.7 488. 7 541.1  326  281  199  244  0  0 
Pharmaceuticals (index) .. ..  72.0  0.0  64.0  0  0  0  0  0  0 
Soap (thousand tonnes)  3.7  3.4  4. 7  3.0  4.6  3  2  2  3  2  3 
Sugar (thousand tonnes)  27.9  32.2  28. 9  24.4  26.7  28  32  32  38  56  36 
Corrugated iron sheets (tonnes) .. .. .. .. ..  339  236  482  694  906  189 
Oilcakes (thousand tonnes)  23.3  19.8  24.3  29.8  39.4  32  17  24  26  19  12 
Meat (thousand tonnes) .. .. .. .. ..  71  72  75  76  77  78 
.. Not available. 
Source : Ministry of the Economy, Planning and Cooperation.  
57. There are numerous constraints on the manufacturing sector, including the erratic supply of 
highly priced power and water, the poor quality a nd high cost of transportation and communication 
services, and the high cost of and problematic acc ess to other inputs, including raw materials and 
funding.  These constraints account for the fact th at Chadian industries generally process local raw 
materials for the domestic market. 
58. The simple average of the cumulation of duties and taxes applied to the manufacturing sector 
(ISIC definition) is 20.5 per cent, of which 18.1 per cent represents import duty alone (Tables III.2 
and AIV.1);  a large number of imported manufactur es are subject to the maximum import duty of 
30 per cent, plus the statistical tax, the Community integration tax, as well as the other import duties 
and charges (Chapter III(2)(ii)).  This tariff structur e inherited from the CET is driving up the cost of 
imports to Chadian consumers, even in the absenc e of similar local production.  Moreover, its mixed 
escalation (negative from raw materials to semi-fi nished goods) is not conducive to investment in 
most local industries, since it furt her raises already high production costs, nor does it tend to promote 
the exportation of manufactures. 
59. Imported manufactures are also subject to intern al taxes such as VAT (Chapter III(2)(ii)) and, 
in some cases, excise duty (Table AIII.1).  The hi ghest level of taxation a ffects products subject to 
excise duty, mainly alcoholic beverages (almost 80 per cent, comprised of 36 per cent import duties 
and charges, 25 per cent excise duty and 18 per cent VAT) and cleaning products. 
(5) SERVICES  
(i) Overview 
60. Chad's international trade in services has shown strong growth since 2000 thanks to the 
country’s petroleum industry (Table I.3).  Yet servic es were not able to play any significant part in 
economic growth and developmen t between 2000 and 2005 (Table I.1).  Falling productivity in 
almost all subsectors, reflecting the deteriorati on of infrastructure and poor management of public 
service enterprises, has led to a decline in their share of total GDP.  In the transport subsector, for Chad WT/TPR/S/174 
 Page 65 
 
 
example, the relatively uncompetitive quality and co sts of production factors such as hydrocarbons 
have further impeded growth. 
61. Chad has made few commitments in the WTO in respect of trade in services.  Only some 
tourism services are included in its list of sp ecific commitments under the General Agreement on 
Trade in Services (GATS).44  Chad has not participated in the fourth and fifth GATS protocols on 
telecommunications and financial serv ices, respectively.  Chad's polic y on trade in services involves 
national regulations and re gulations established supr a-nationally and automatically enforceable in the 
context of regional integration in the CAEMC.  In practice however, the services sector is hardly 
integrated in the CAEMC. 
(ii) Transport 
62. Transport policy falls under the Minister res ponsible for transport.  The Government has 
drawn up a National Transport Strategy (SNT) for the period 2000-2009, aimed principally at helping 
to promote economic growth and reduce poverty by opening up the country both internally and 
externally, reducing transportation costs, ensuring ac cess to all regions of the country even during the 
rainy season, building an adequate road network suitable for year-round vehicular traffic so as to 
interlink the country's main cities and towns, furt hering the process of liberalizing the subsector and 
modernizing its management, as well as developing rural infrastructure.   Thanks largely to petroleum 
resources, the SNT has brought about appreciable impr ovement to road transport infrastructure since 
2003.  Chad does not yet have a railway system. 
(a) Land transport 
63. Most land transporters (of goods and passengers) are registered w ith the Ministry responsible 
for transport.  Registration gives entitlement to a tran sporter's licence that must be renewed annually.  
Transporters are also organized in  a Transporters Cooperative and a Transporters Union that defends 
their interests.  Yet most transport activities are info rmal.  The cost of road transport is considered 
relatively high, partly because of the poor quality of  the infrastructure, the large number of police and 
customs checkpoints and the risks enta iled (insecurity in some areas).45  The Government's priorities 
are therefore to overhaul the road network, prov ide security, and develop new infrastructure.  
According to the authorities, "anti-gang brigades" have been set up since 2004 under the National 
Road Safety Strategy. 
64. The year 2000 saw the entry into force of th e Regulation adopting the Priority Integrated 
Road System within the CAEMC46, which provides for a priority road network for the purposes of the 
Inter-State Transit for Central African Countries (TIPAC) system.  Significant progress has reportedly 
been made inter alia  in the building of three international highways:  from N'Djamena to the 
Sudanese border, 226 km out of a total of 1,063 km have been paved;  from N'Djamena to the 
Cameroonian border, the entire route has been paved since June 200647;  and between N'Djamena and 
Massakory-Bol (Niger), 77 km out of 249 km have been surfaced.  All told, Chad’s paved network 
had increased from 557 km in 2002 to 736 km by the end of 2005, and is currently almost 900 km 
long. 
                                                      
44 WTO document GATS/SC/87 of 15 April 1994. 
45 Mistowa (2005). 
46 Consulted at: http://www.izf.net/izf/Document ation/JournalOfficiel/AfriqueCentrale/2000/ 
REG_9_00.htm. 
47 See Journal du 26 juin 2006 .  Consulted at: http://www.primature-tchad.org/?Journal/2006/06. WT/TPR/S/174 Trade Policy Review 
Page 66 
 
 
65. The Office national des routes – OFNAR (National Roads Bureau) was liquidated in 1994.  
The Société nationale d'entretien routier  (National Road Maintenance Company), a government 
company, was created in 2002 to replace the OF NAR.  It was then privatized and renamed Société 
nouvelle d'études et de réalisations  (SNER), a service company with specific terms of reference.  The 
SNER's capital is held by private Chadians.  Acco rding to the authorities, the SNER is in competition 
with SATOM, a foreign private company.  Road maintenance is financed by the Fonds d'entretien 
routier – FER (Road Maintenance Fund), which falls unde r the supervision of the Ministry and is 
funded in part from petroleum tax revenue a nd from the fees paid by land transporters. 
66. The provision of internal land transport services  is in principle reserved for transporters 
(drivers and enterprises) registered in Chad.  The agreement between the Republic of Chad and the 
Republic of Cameroon reserves road transportation of goods between the two countries for companies 
registered in one or the other country, with a 65 per cent quota for Chadian companies and a 35 per cent quota for Cameroonian companies.  Goods tran sportation prices are unregulated, and the trade 
unions play no part in setting them.  The costs of urban passenger transportation are in principle set by the unions and then approved by the Ministry. 
(b)
 Air transport 
67. Chad has one airport capable of receiving wide-bodied aircraft, located in N'Djamena.  The 
airports of Abéché, Faya Largeau, Moundou and Sarh  are also served by scheduled flights.  The 
following national and international airline companie s were in operation in October 2006:  Afriqya, 
Air France, Ethiopian Airlines, Sudan Airways, and Toumaï Air Tchad, the leading airline under 
Chadian law.  Since its creation in 2004, Toum aï Air Tchad has been providing air connections 
(passengers and cargo) between N'Djamena and Ab idjan, Bangui, Douala , Cotonou, Brazzaville, 
Lomé and Niamey, as well as internal flights.  The Government holds a 40 per cent capital stake in 
Toumaï.  Nada Air is another airline company unde r Chadian law that mainly charters cargo flights 
from the Middle East.  According to the authorities,  there is no restriction on the establishment of 
airlines by foreigners.  Nevertheless, Toum aï currently has a monopoly on domestic routes. 
68. The main legislation governing civil aviation is the 2000 Civil Aviation Code.48  It regulates 
aircraft airworthiness and operations, as well as the establishment, operation and supervision of 
airports.  Chad has also adopted the Regulation implementing the CAEMC Code of Civil Aviation, 
and regarding the operation of air tran sport services among member countries.49  Some aspects of the 
two Codes overlap, while others are complementary.50  Chad has also adopted the Regulation 
implementing the Accord relatif au transport aérien en tre les États membres de la CEMAC  
(Agreement on Air Transportation among CAEMC Member States).51  Under this Agreement, 
CAEMC Member States have in principle fully lib eralized traffic rights for the airline companies 
designated by each Member, since 2001.  In practi ce, only companies with majority African capital 
are designated.  Cabotage is not allowed except when  authorized by the competent body.  Chad is a 
member of the International Civil Aviation Organiza tion (ICAO), the Agency for the Safety of Aerial 
Navigation in Africa and Madagascar (ASECNA)  and the African Civil Aviation Commission 
(CAFAC).  The Civil Aviation Department, wh ich became the Civil Aviation Authority in 
February 2006, is responsible for overseeing safety and regulating air transport activities in general.  
The Authority is self-financing. 
                                                      
48 Law No. 032/PR/2000 on the Code of Civil Aviation, of 17 May 2000. 
49 Regulation No. 10/00-CEMAC-066-CM-04 of 21 July 2000. 
50 See, in particular, ICAO (2001). 
51 Regulation No. 6/99/CEMAC-003-CM-02 adopting the Agreement on Air Transportation among 
CAEMC Member States.  Consulted at: http://www.izf.ne t/IZF/Documentation/JournalOfficiel/AfriqueCentrale/ 
REG_6_99.htm. Chad WT/TPR/S/174 
 Page 67 
 
 
69. All commercial airports in Chad are the property of the State and are managed by the 
Ministry responsible for transport.  The ASECNA  manages aerial navigati on and safety services, 
including landings and takeoffs, as well as a ll airport buildings.  Ground assistance, including 
maintenance, falls within the purview of the régie autonome for handling in Chad, a State-owned, 
independent authority.52  The Aviation Code nevertheless provides for the creation and operation of 
airfields by legal entities other than the State.  There is a private airfield at Komo, which serves the oil 
industry. 
70. Chad has signed some 26 bilateral air transpor t agreements but has ratified only two (with 
Sudan and the former USSR).  These agreements ge nerally cover the joint operation of airlines by 
Chadian and foreign companies and third and fourth freedom traffic rights.  In 2006, Chad signed but 
has not yet ratified an open skies agreement with the United States.53 
71. According to the authorities, Chad applies th e provisions of the Decision Relating to the 
Implementation of the Yamoussoukro Declaration Concerning the Liberalization of Access to Air 
Transport Markets in Africa, which entered into  force on 12 August 2000 and which takes precedence 
over any other multilateral or bilateral agreement governing airline services between the States 
Parties, containing provisions contrary to it.54  According to many observers, however, air transport 
between countries in the subregion was still relativ ely costly in October 2006 and was not meeting 
local demand.55 
72. In December 2001, the Conference of CAEMC He ads of State in Yaoundé decided to set up a 
Subregional Air Transport Company with mostly pr ivate capital, called Air CEMAC.  In its present 
form, the project envisages Air CEMAC as a limited liability company with a capital of 
CFAF 21 billion, distributed among Member States (30 per cent), a technical partner (18 per cent), and private investors (52 per cent).
56 
(iii) Tourism 
73. Chad's main tourist attractions include the ancient kingdoms of Tibesti and Ouaddaï, Lake 
Chad, western Logone (Lake Whey), eastern Logone , Mount Guéra, the Zakouma National Park, and 
the Mayo Kebbi reserve.  Although the Governme nt adopted its General Policy Declaration on 
Tourism Development in Chad in 1998, the subs ector has not received a ny substantial support.  
Tourism is largely underdeveloped owing inter alia  to the climate of insecurity and the high cost of 
air transport.  The result is that business travel acc ounts for the bulk of travel to Chad at the moment. 
74. In 2003, the total number of beds was about 9 00, of which 550 in N'Djamena.  Yet this 
number probably increased in 2006 with the opening of a new five-star hotel in N'Djamena.  
According to the Ministry of Tourism, the number of tourists declined steadily from 46,000 in 1999 to 
                                                      
52 "Les administrations déléguées".  Cons ulted at:  http://www.asecna.aero/asecna_ 
administrations.html. 
53 Consulted at:  http://www.state.gov /documents/organization/68408.pdf. 
54 The Yamoussoukro Decision eliminat es all non-physical barriers and the restrictions on the granting 
of traffic rights, more particularly those of the fift h freedom, on the aircraft capacity of African airline 
companies, on the regulation of tariffs, on the designati on of airlines by States, an d on the operation of cargo 
flights. 
55 See, in particular, the address by the President of the Commission of the African Union at the 
opening of the high-level meeting of African airline companies, Tunis, 29 May 2006.  Consulted at:  
http://www.u neca.org. 
56 CAEMC Executive Se cretariat (2004). WT/TPR/S/174 Trade Policy Review 
Page 68 
 
 
21,000 in 2003 (Table IV.5).  Two of the three major hotels in N'Djamena belong to the State, with 
their management contracted out to the private sector. 
Table IV.5 
Number of arrivals at hotels and sim ilar establishments, by origin, 1999-2003 
Origin 1999 2000 2001 2002 2003 
Africa  13,649  12,542  16,911  7,514  5,141 
America  4,546  7,778  5,122  6,485  4,368 
 of which United States  3,539  5,320  3,695  4,913  3,206 
Asia  420  436  1,623  1,000  297 
Europe  24,134  21,303  31,889  15,226  10,040 
 of which France  19,464  13,706  22,274  10,835  7,897 
Middle East  139  531  1,309  2,110  1,133 
Total  46,448  42,590  56,854  32,335  20,979 
Source : Ministry of Tourism Development.  
75. A law was adopted in 2002 laying down the c onditions for the construction, conversion and 
operation of tourism establishmen ts (accommodation, restaurant services, and travel agencies).57  
Under this law, all new tourism es tablishments must be authorized by the Ministry responsible for 
tourism, on the advice of the Inter-Ministerial Tec hnical Commission that examines tourism projects.  
Hotel classifications are the purview  of the Ministry responsible for tourism, and are based on the star 
system.  Operators are free to set their rates.  Ne vertheless, the application for an operating licence 
must be accompanied by a list of service charges. 
76. Tourism is one of the areas in which Chad has made specific commitments under the 
GATS58;  more specifically, the services covered are th e hotel business, restaurants, travel agencies 
and tour operators.  Operation of a travel agency  requires a permit from the Ministry, delivered on the 
advice of an advisory commission set up for that purpose. 
(iv) Telecommunications 
(a) Market overview 
77. The telecommunications subsector has seen rapid growth of the market and range of services 
as a result of the entry of mobile telephony operators in 2000.59  The available statistics show that the 
number of mobile telephone subscr ibers has risen from roughly 26,000 in 2000 to about 500,000 in 
2006 (6.3 per cent of the population).  The number of landlines, on the other hand (13,000 functioning 
lines, or 0.2 lines per 100 inhabitants) (Table IV .6), has hardly changed, and remains low by 
comparison with the African averag e (five lines per 100 inhabitants).  Under a rural telephone service 
project, VSAT antennas have been installed in 15 se condary towns, and three other installations were 
envisaged for 2005.  Telecommunications access should be further enhanced with the installation, as 
part of the petroleum project, of a 1,200 km fibre-optic cable along the pipeline.  This cable has a capacity of 2.5 gigabytes. 
                                                     
 
57 Law No. 19/PR/2002 regulating tourism establishments. 
58 WTO document GATS/SC/108 of 30 August 1995. 
59 World Bank (2004). Chad WT/TPR/S/174 
 Page 69 
 
 
Table IV.6 
Telecommunication indicators, 2001-2005 
 2001 2002 2003 2004 2005 
Fixed-line telephony 
Number of subscribers  10, 689  11,835  12,450  13,000  13,000 
Teledensity of fixed lines (number of lines pe r 100 inhabitants)  0.14  0.15  0.15  0.15  0.15 
Mobile telephony 
Number of subscribers  22,000  34,200  65,000  123,000  500,000 
Teledensity of mobile lines (number of lines pe r 100 inhabitants)  0.29  0.43  0.80  1.39  6.3 
Internet 
Number of subscribers  1,517  1,802  2,317  2,484 .. 
Investments (CFAF billion)  569.7  816.0 .. .. .. 
.. Not available. 
Source : International Telecommunicatio n Union;  and data supplied by the Chadian authorities.  
78. As at October 2006, the fixed telephone networ k was operated exclusively by the traditional 
operator SOTEL Tchad, which is re sponsible for the management and operation of transmission 
infrastructure.60  There are less than 300 telephone booths and few call centres.  Since 2000, three 
operators have been granted mobile telephony licen ces to operate on the Chadian market:  Celtel 
Tchad, Tchad Mobile (Libertis), and Millicom.  Owing to fiscal irregularities, Tchad Mobile was 
closed down in 2004 by the Collection and Audit Commission of the Ministry of the Economy and Finance.  Celtel, whose capital is wholly fo reign-owned, had some 200,000 subscribers in 2004.
61  In 
October 2005, the Millicom TIGO mobile phone compan y, also based on foreign capital, launched its 
GSM network.  Millicom had some 135,000 subscribers in 2006.62 
79. In October 2006, the SOTEL rate for local co mmunications ranged from CFAF 25 per minute 
(landline to landline) to CFAF 165 per minute (land line to mobile line).  The cost of international 
calls to France and Nigeria were, respectively, CF AF 1,290 and CFAF 2,625 (€2 and €4, respectively) 
per minute at the start of 2006 and had moved to CFAF 700 and CFAF 500 by October 2006, thanks 
in part to competition.  In October 2006, Celtel wa s billing those same calls at CFAF 400 per minute. 
80. SOTEL is the sole provider of Internet services .  A recent study shows its prices to be 
excessive;  a minute of connection time is billed at  CFAF 40, i.e. five times the amount charged in 
neighbouring Cameroon.63  The authorities report that this rate was reduced to CFAF 20 per minute in 
October 2006.  The current Internet penetration rate  is low, but growing fast.  Millicom had planned 
to launch an Internet service at the beginning of 2006. 
(b) Regulation 
81. The Ministry of Posts and New Communication Technologies (MPNTC) is in charge of 
Chadian posts and telecommunications policy, whic h aims to expand covera ge of urban and rural 
areas especially by developing mobile telephony,  and to ensure effective competition among the 
various players, for the benefit of users.  With the support of the United Nations Economic 
Commission for Africa, the MPNTC published an Information and Communication Technologies 
Development Plan for Chad in April 2006.64 
                                                      
60 SOTEL Tchad, information online.  Consulted at:  http://www.sotel.td. 
61 Celtel, information online.  Consulted at:  http://www.td.celtel.com/fr/about-us/index.html. 
62 Revue de presse tchadienne .  Consulted at:  http://www.cefod.org/Presse/revuepresse4.htm. 
63 Consumer Protection Association (2005). 
64 Ministry of Posts and New Communication Technologies (2006). WT/TPR/S/174 Trade Policy Review 
Page 70 
 
 
82. The main legislation on telecommunications, a law passed in 1998 and its implementing 
decree65, established SOTEL Tchad, a fully State-owned company, to operate and develop the basic 
telecommunications network that had previ ously belonged to the National Post and 
Telecommunications Office.  The law granted a five-year (2000-2005) monopoly to SOTEL Tchad 
for the provision of basic telecommunications services.66  At the end of that period the law grants 
ownership of the telecommunications network to SO TEL Tchad, which is also charged with providing 
the statutory universal services.67  The privatization of SOTEL Tcha d was initially scheduled for 2001 
but has not taken place. 
83. A decree passed in 2005 sets the total number of telecommunications network operators at 
nine, distributed as follows:68  a single operator for the basic telecommunications networks, three 
operators for terrestrial mobile radi o networks, including a subsidiary of the traditional operator;  and 
five operators to provide Internet access to the public, including the traditional operator. 
84. The 1998 law created the Chadia n Telecommunications Regulati on Bureau (OTRT), which is 
responsible for applying the law.  Amongst other th ings, the OTRT ensures that the technical and 
commercial terms of interconnection do no t hamper the provision of services.69  T h e  O T R T  i s  
responsible for radio frequency spectrum management .  The establishment a nd operation of networks 
and services are authorized by the Minister, on th e technical advice of the OTRT.  Authorizations 
include a set of specifications establishing, inter alia , the area to be covered by the network, the 
timetable for bringing it into operation, a nd the methods for setting and renewing rates. 
85. The OTRT approves interconnection agreemen ts among operators a nd the related rates 
(negotiated between the parties concerned) before th e agreements are implemented.  The rates include 
a fixed portion corresponding to the costs of setting up the systems to provide interconnection, and a 
variable portion corresponding to the costs of call routing.  The OTRT also serves as the arbitrator in any dispute among operators. 
86.
 Pursuant to Article 186 of the Chadian C onstitution, the Higher Council for Communication 
monitors compliance with the code of ethics in information and communication, guarantees freedom 
of the press and safeguards plurality of opinion.   It regulates communication relations between 
government authorities, the media and the public and also issues technical opinions and recommendations on matters relating to information. 
(v)
 Postal services 
87. The Ministry of Posts and New Communication Technologies is also in charge of regulating 
postal services.  Until 1998, the National Post and Telecommunications Office was the entity 
responsible for providing such services.  The main legislation governing postal services was enacted 
                                                      
65 Law No. 009/PR/98 of 17 August 1998 on telecommunications;  and Decree No 433/pr/MPT/98 of 
23 December 1998 approv ing the Articles of the Société des télécommun ications du Tchad  (SOTEL Tchad). 
66 Decree No. 286/PR/MPT/2003 setting the exclusivity period for SOTEL Tchad. 
67 The operator responsible for universal services sh all make available to "all, on the national territory, 
a minimum telecommunications service of good quality and at  an affordable price.  The operator shall ensure 
the routing of telephone communications from or to subscription points, the routing of emergency calls free of 
cost, the provision of information services and a telephone directory, whether in printed or electronic form, and 
lastly, the provision of telephone booths throughout the national territory". 
68 Decree No. 280/PR/MPT/05 of 23 May 2005 lim iting the number of authorizations for the 
establishment and operation of telecommunications networks. 
69 Decree No. 453/PR/MPT/99 approving the Statutes of the Office tchadien de régulation des 
télécommunications  (OTRT).  See also OTRT, information online.  Consulted at:  http://www.otrt.td/. Chad WT/TPR/S/174 
 Page 71 
 
 
in 1998.70  T h e  Société des postes et de l’épargne  – STPE (Post and Savings Company), a fully 
government-owned enterprise, again took over postal activities from the Post and 
Telecommunications Office in 1992.  It has some  240 employees and maintains 40 offices throughout 
the country.  According to the Ialtchad  newspaper, the postal network is very loosely interconnected, 
with some 400 postal officers and one office per 206,000  inhabitants, or a density equivalent to one-
tenth of the average in sub-Saharan Africa.71 
88. The STPE has a monopoly on the collection, transport and distribution of postal items with 
national or foreign destinations.  However, Ar ticle 10 of the law provides that the STPE may 
outsource any activity to operators.  As regards express delivery services, the EMS service (owned by 
the STPE) competes with several private compan ies, including foreign ones (DHL, Saga express, 
Universel-express). 
89. The STPE manages a postal financial network of some 11,000 giro accounts.  The 1998 law 
provided for a new entity separate from the STPE, the Caisse d'épargne postale  (Postal Savings 
Fund), but it has not yet been established. 
(vi) Financial services 
(a) Banking services 
90. Table IV.7 lists the banks currently operating in Chad.  The Société générale tchadienne de 
banque  (SGTB) is the country's leading bank, with  40 per cent of credits granted, which is a 
considerable degree of banking concentration.  Th e subsector also includes two non-banking financial 
establishments, as well as the Union régionale des coopératives d'épargne et de crédit  – URCOOPEC 
(Regional Union of Savings and Loans Cooperatives).   At end-July 2006, total banking assets were 
CFAF 176.5 billion (roughly €269 million).  Available in formation indicates that the current situation 
of Chadian banks is relatively sound.  Only one  establishment was reported to be in a critical 
situation, with negative capital, which is in breach of prudential standards.72  The central bank is the 
Bank of Central African States (BEAC). 
Table IV.7 
Principal banks, 2006 
 Total capital 
(CFAF 
million) Foreign capital 
(per cent) Government's 
capital stake 
(per cent) 
Primary banks subject to the COBAC 
Société générale tchadienne de banque (SGTB)a  1,100  45  20 
Banque sahélo-saharienne pour l'inve stissement et le commerce (BSIC)b  2,000  100  0 
Commercial Bank Tchad  4,019 ..  17.5 
Banque commerciale du Chari (BCC)  3,000  50  50 
Financial Bank  1,850  69  0 
Banque internationale pour l'Afrique au Tchad (BIAT)  3,000 ..  0 
Banque agricole et commerciale  868  100  0 
Other banks 
Banque tchadienne arabe libyenne .. .. .. 
Union régionale des coopératives d'épargne et de crédit (URCOOPEC) .. .. .. 
.. Not available. 
a Société générale tc hadienne de banque , information online.  Consulted at:  http://www.sgtb.td. 
b Banque sahélo-saharienne pour l'in vestissement et le commerce , information online.  Consulted at:  http://www.bsic-tchad.com. 
Source : Data supplied by the Chadian authorities;  and BEAC.  
                                                      
70 Law No. 008/PR/98. 
71 "Tchad économie:  télécommunications", Ialtchad Presse .  Consulted at:  http://www.ialtchad.com/ 
salontelecommunications.htm [10 August 2006]. 
72 Madji (1997). WT/TPR/S/174 Trade Policy Review 
Page 72 
 
 
91. Chadian banks are engaged mainly in the fi nancing of short-term  company operations, 
especially import-export operations, certain real estate credit operations, as well as consumption 
(e.g. the purchase of vehicles).  Chad's financial subsector as a whole is very small, and makes a 
limited contribution to the funding of the country 's production and development activities.  The Chad 
Development Bank (BTD) wa s established in 1962 to provide long -term financing for investment in 
production.  It was restructured and privatized in  1999, when it became Commercial Bank Tchad, and 
is currently active in the financing of co tton, sugar and petroleum-related activities. 
92. Banking activities in Chad are subject to the banki ng regulations of the CAEMC, set forth in 
the Agreement Establishing the Central African Banking Commission (COBAC).  On the advice of 
COBAC, Chad’s Minister of Finance approves credit establishments.  COBAC monitors the 
operations of credit establishments and their fina ncial soundness.  The minimum capital required for a 
banking establishment is CFAF 150 million, and th e terms and conditions of  establishment are the 
same for foreign and local banks. 
93. In November 2000, the CAEMC Ministerial Co mmittee adopted the "Single Authorization".73  
The latter was to become effective in 2002, making it possible for a bank established by means of a 
licence in one Member State to open branches or agencies in the other Member States without having 
to repeat the administrative approval procedures in each country, more specifically those in respect of 
the juridical form of credit institutions, their capita l composition, and their procedures for appointing 
managers.  The single authorization was intended to facilitate the bank establishment process and 
thereby correct the fragmentation of the region's banking system, as well as stimulate competition.  It 
would seem, in practice, that the single authorization has not been implemented. 
94. To mobilize household savings and channel them toward productive invest ments, as well as 
to ease the terms of access to credit for SMEs, the World Bank and the International Finance Corporation have set up a programme to reinforce the system of microfinancing.  The latter covers 
loans ranging from CFAF 750,000 to lines of cred it worth around CFAF 656 million, with repayment 
periods generally spanning six months to four y ears.  The development of microfinancing has been 
fostered by new COBAC regulations in that regard, introduced in 2002.
74  The URCOOPEC brings 
together several of these establishments , while the others operate independently. 
(b) Insurance services 
95. Chad's insurance market is comprised mainly of STAR nationale, the Société africaine 
d'assurance et de réassurance  (SAFAR), and Assureurs-conseils tchadiens .  STAR nationale was 
Chad's first national insurance company.75  It was privatized in 1992.76  Its capital is distributed as 
follows:  65.5 per cent held by private Chadian sh areholders, and the remainder by foreign private 
parties.  SAFAR was created in 2001 with priv ate Chadian and Cameroonian shareholders.  The 
Chadian market also comprises four insurance broke rage firms, two of which are foreign (Marsh and 
Gras Savoye) and two Chadian (Socar and Sotca). 
                                                      
73 Regulation No. 01/00/CEMAC/UMAC/COBAC instituting the Single Authorization for credit 
establishments in the Central African Economic and M onetary Community, 27 November 2000.  Consulted at:  
http://droit.francophonie.org/doc/html/znac/loi/lgcm/fr/2000/2000dfznaclgcmfr5.html. 
74 Regulation No. 01/02/CEMAC/UMAC/COBAC concerning the requirements for engaging in and 
overseeing microfinance operations in the Central African Economic and Monetary Community.  Consulted at:  
http://www.izf.net/IZF/Documentation/JournalOffici el/AfriqueCentrale/2002/REGCOM01_02_UEAC.htm. 
75 Ordinance No. 10/PCSM/SGG/77 of 30 June 1977. 
76 Order No. 42/MFI/DG/95 on the final award of STAR nationale . Chad WT/TPR/S/174 
 Page 73 
 
 
96. The Chadian insurance market is governed by  the Insurance Code of the Inter-African 
Conference on Insurance Markets (CIMA), established in 1992.77  CIMA has the following organs:  
the Council of Ministers, the Regional Commissi on for Insurance Supervision (CRCA), and the 
General Secretariat.  Insurance companies may st art operations only after obtaining approval from the 
Minister of Finance, subject to the assent of the CRCA. 
97. Applications for approval must contain, inter alia , a list of the branches of insurance that the 
company intends to cover;  where applicable, an indication of the countries in which the company 
plans to operate;  a copy of the company's instrument of incorporation;  evidence of a bank deposit;  
the list of managers and directors and of all persons  who will be discharging similar functions;  and a 
programme of activities.  The programme must contain:  (i) a document specifying the nature of the 
risks the company intends to insure;  (ii) for each of the branches of insurance for which approval is 
being sought, two copies of the policies and printe d matter intended for distribution to the public or 
for publication;  and (iii) for each of the branches  for which approval is be ing sought, two copies of 
the rate structure.  The minimum capital require d under the CIMA Code for the creation of an 
insurance company is CFAF 500 million for limited liability companies, and CFAF 300 million for 
mutual companies. 
98. Applications for approval submitted by companies with headquarters outside the territory of 
the Member State where the company in question wishes to operate must contain, in addition to the 
documents mentioned above, evidence that the co mpany maintains a branch where it has elected 
domicile in that Member State.  Risks inside Chad  may not be covered by companies that do not have 
their registered headquarters in a CIMA member country.  Risks outside CIMA member countries 
may not be insured by companies domiciled in Chad , except by special dispensation from the Minister 
responsible for insurance.  No single compan y may offer life and non-life insurance cover. 
99. Under the CIMA Code (Book II), automobile insura nce (third-party liability) is compulsory.  
The Minister of Finance issues an order setting a minimum for automobile insurance premiums (third-
party liability).  The premiums for other types of insurance are set by the operators and submitted to 
the Ministry for approval. 
(vii) Professional and business services 
100. Business services, including professional services , are provided mainly in N'Djamena.  They 
are chiefly information technology services, accoun ting, auditing, legal c ounsel and tax advisory 
services, studies, training, and representation. 
101. Some six accounting firms are listed in N'Djamen a.  The international audit firms present in 
Chad include Finadev (Horus Group) and FIDAF RICA (Price Waterhouse Coopers Group).  The 
legal regime governing the profession of certified acc ountant reportedly dates back to 1982.  There is 
apparently no association of certified public account ants or equivalent professional body.  In 2002, a 
CAEMC decision instituted a system of single acc reditation for certified public accountants and 
certified accountants, as well as for a ccounting firms within the Community.78  Accountants who had 
been previously accredited under national law were  automatically accredited under the newly created 
system of registration. 
                                                      
77 The Code applies in the following countries:  Benin, Burkina Faso, Ca meroon, Central African 
Republic, Chad, Congo, Côte d'Ivoire, Gabon, Mali and Togo (CIMA, information online.  Consulted at:  
http://www.cimaonline.net/Traite/Code/traite7.htm. 
78 Decision No. 22/99/UEAC-10-C- CM-02 concerning the approval of the accounting professions. WT/TPR/S/174 Trade Policy Review 
Page 74 
 
 
102. The lawyer's profession is regulated by a law passed in 1996.79  To register with the Lawyers 
Association and be entitled to practice in Chad, candi dates must be of Chadian nationality or citizens 
of a State granting reciprocity, and resident in Chad.  Candidates must also hold a law degree and 
have obtained a certificate of completion of traineeship at a lawyer's office.  The Board of the 
Lawyers Association approves or rejects applications .  Foreigners may practice as legal advisers in 
keeping with the law of their count ries, or with international law. 
                                                      
79 Law No. 33/PR/96 of 5 November 1996 creating and organizing the lawyer's profession. Chad WT/TPR/S/174 
 Page 75 
 
 
REFERENCES 
 
 Canadian Food Inspection Agency (2006), "
Directive D-95-28:  Plant Protection Import and 
Domestic Movement Requirements for Corn, Zea mays ", March.  Consulted at:  
http://www.inspection.gc.ca/english/pl aveg/protect/dir/d-95-28e.pdf. 
 Agence France Presse (2004), 
Création d'une zone de libre échange en Afrique centrale  (Creation of a 
free-trade area in Central Afri ca), 27 January.  Consulted at:  
http://www.aegis.com/NEWS/AFP/2004/AF 040177_FR.html [22 January 2006]. 
 Consumer Protection Association (2005), 
Evaluation de l'AGCS et son impact sur l'accès aux services 
essentiels:  le cas des services de l'eau, de l'électricité et des télécommunications au Tchad  (An 
assessment of the GATS and its impact on access to essential services:  the case of water, electricity and telecommunications services in Chad), November, N'Djamena. 
 
World Bank (2004), 
Aide-mémoire – Mission principale de l'Etude Diagnostic sur l'Intégration du 
Commerce (EDIC) du Cadre intégré (CI) au Tchad  (Aide-mémoire - Main mi ssion for the Diagnostic 
Trade Integration Study in the context of the In tegrated Framework in Chad).  Consulted at:  
http://www.integratedframework.org/files/ch ad_am_juin2004_fr. pdf [15 June 2006]. 
 
Bank of Central African States, BEAC (2006a), Programmation monétaire 2006 des six Etats de la 
CEMAC  (Monetary programming for 2006 for six CAEM C States), Semi-annual review, Summary 
note updated on 26 July 2006.  Consulted at:  http://www.beac.int/pmonetaire/promon6p2006.htm 
[8 August 2006].  
BEAC (2006b), 
Situation monétaire du Tchad au 30 juin 2006  (Monetary situation of Chad as at 
30 June 2006).  Consu lted at:  http://www.beac.int/conjoncture/smtch.htm. 
 International Bank for Reconstr uction and Development, IBRD, and International Development 
Association, IDA (2002), 
Management Report and Recommendation in Response to the Inspection 
Panel Investigation Report - Chad:  Chad-Camero on Petroleum Development and Pipeline Project;  
Petroleum Sector Management Capacity-Building Project; Management of the Petroleum Economy 
Project , Report No. 24667, August.  Consulted a t:  http://siteresources.worldbank.org/ 
EXTINSPECTIONPANEL/Resources /ManagementReport82102.pdf. 
 
International Trade Centre and Agence inte rgouvernementale de la Francophonie, AIF 
(Intergovernmental Francophone Agency) (2004), Expansion du commerce intra- et inter-régional 
entre les pays de la CEMAC et de l'UEMOA – Tchad – Étude de l'offre et de la demande sur les 
produits alimentaires  (Expansion of intra- and inter- re gional trade between CAEMC and WAEMU 
countries - Chad - Study on the supply of and dema nd for food products), December.  Consulted at:  
http://www.intracen.org/sst p/Survey/agro-products /tchad%20final%20survey. doc [5 July 2006]. 
 
United Nations Conference on Trade and Development, UNCTAD (2001), République du Tchad – 
Programme d'action pour le développement du Tchad 2001-2010  (Republic of Chad - Programme of 
action for the development of Chad, 2001-2010), Document A/CONF.191/CP/2.  Consulted at:  
http://www.unctad.org/fr/docs/aconf191cp2cha.fr.pdf. 
 
Cotontchad (2004), Plan de relance de la production coto nnière à partir de la campagne 2004/05  
(Cotton Production Recovery Plan as of 2004/05), Moundou, March, N'Djamena.  WT/TPR/S/174 Trade Policy Review 
Page 76 
 
 
Delegation of the European Community in  the Central African Republic (2003), Région de l'Afrique 
centrale – Communauté européenne, Stratégie de  coopération régionale et programme indicatif 
régional pour la période 2003-2007  (Central Africa Region - European Community, Regional 
Cooperation Strategy Paper and Regional Indica tive Programme for the period 2003-2007).  
Consulted at:  http://www.delcaf.cec.eu.int/fr/ue _et_afrique_centrale/Doc_strategie_cooperation 
_regionale.htm#221A.  Dokalyo A. (2006), "Le Tchad, prochaine victime?" (Chad, the next victim?), 
Tchad & Culture  
No. 245, March.  Consulted at:  http://www.cef od.org/Tchad%20et%20Cu lture/Tc245/fitri7.htm 
[21 September 2006]. 
 European Centre for Development Policy Mana gement, ECDPM (2003), "Les acteurs non étatiques 
au Tchad - D'un rôle de partenaires naturels à cel ui d'alliés efficaces" (Non-State actors in Chad - 
From the role of natural partners  to that of effective allies), 
EnBref  3B, December.  Consulted at:  
http://www.ecdpm.org/Web_ECDPM/Web/Fr_Conten t/Navigation.nsf/index2?readform&http://www
.ecdpm.org/Web_ECDPM/Web/F r_Content/Content.nsf/7732def81dddfa7ac1256c240034fe65/589f9
39742d6b3c9c1256e47004de458?OpenDocument.  Famine Early Warning Systems Network, FEWS NET (2006), 
Chad - Monthly Food Security Update, 
Alert Level: Emergency ), July.  Consulted at:  http://www. fews.net/centers/f iles/Chad_200606fr.pdf 
[15 September 2006]. 
 International Monetary Fund, IMF (2003), 
République du Tchad – Dével oppement du plan d'actions 
de la réforme de l'administration des douanes et stratégie pour sa mise en application  (Republic of 
Chad - Development of the Customs administration reform action plan and strategy for its implementation), September, Washington. 
 
IMF (2004), 
2003 Article IV Consultation; and Ex Po st Assessment of Performance Under 
ESAF/PRGF Programs , April, Washington.  Consulted at :  http://www.imf.org/external/pubs/ 
ft/scr/2004/cr04111.pdf.  
IMF (2006), 
Debt Relief Under the Heavily Indebt ed Poor Countries (HIPC) Initiative , Factsheet, 
September.  Consulted at:  http://www.im f.org/external/np/exr/facts/hipc.htm. 
 Gondjé L. (2004), "Moundou:  Danger sur les regr oupements" (Moundou:  Danger for small business 
groupings), 
Tchad & Culture  (Chad and Culture) No. 229, Se ptember.  Consulted at:  
http://www.cefod.org/Tchad%20et%20Culture/Tc 229/gouv.economique11.ht m [21 July 2006]. 
 International Civil Aviation Organization, ICAO (2001), 
Rapport sommaire d'audit de la direction de 
l'aviation civile du Tchad  (Summary audit report by the Chadian Civil Aviation Authority). 
 Investir en Zone Franc, IZF (Investing in free zones) (undated), 
Privatisations:  les stratégies 
gouvernementales  (Privatizations:  government strategies ).  Consulted at:  http://www.izf.net/izf/ 
Guide/Tchad/Page3.htm [2 June 2006].  Madji A. (1997), 
Point sur la restructuration bancaire en Afrique centrale  (Review of the 
restructuring of the banking sector in Central Africa).  Consulted at:  
http://hei.unige.ch/mpfsrp/papersmpf srp/madji-pap.pdf [27 July 2006]. 
 Chad WT/TPR/S/174 
 Page 77 
 
 
Mamout B. (2006), "Le Tchad doit bou ger" (Chad must move forward), Tchad & Culture  (Chad and 
Culture) No. 245, March. Consulted at:  http://www.cefod.org/Tchad%20et%20Culture/ 
Tc245/commerce_international.htm.  
Ministry of Agriculture (2005a), 
Conférence régionale sur la situatio n agricole et alimentaire et les 
opportunités d'échanges dans le sahel et en Afrique de l'ouest, Rapport du Tchad  (Regional 
Conference on the agricultural and food situation and trade opportunities in the Sahel and in West 
Africa, Report by Chad), March, N'Djamena.  
Ministry of Agriculture (2005b), 
Programme national de sécurité a limentaire, sous-secteur de 
l'agriculture  (National food security programme, agricultural subsector), May, N'Djamena. 
 Ministry of Agriculture (2005c), 
Tchad – Schéma directeur agricole (2006 2015)  et plan d'actions  
(Chad - Agricultural master plan (2006 2015) and action plan), June, N'Djamena.  
Ministry of the Economy, Planning and Cooperation (2006), 
Prévisions macroéconomiques 2006-09  
(Macroeconomic forecast 2006-09), Appendix tables, N'Djamena.  Ministry of the Environment and Water and Unite d Nations Institute for Training and Research, 
UNITAR (2002), 
Profil national du Tchad sur la g estion des produits chimiques  (Country Profile of 
Chad in relation to chemicals management), August.  Consulted at:  http://jp 1.estis.net/sites/cien_td/ 
default.asp?site=cien_td&page_id= 93B7A911-38F6-4F58-8A96-7D13FE2E27 15. 
 Ministry of Finance, Directorate General of Taxes (2006), 
Code général des impôts  (General Tax 
Code), Update of 14 August 2006.  Consu lted at:  http://www.dgitchad.org/cgi-123.pdf. 
 
Ministry of Postal Services and New Communication Technologies (2006), Plan de développement 
des technologies de l'information et de la communication au Tchad  (Information and communication 
technology development plan for Chad), April, N'Djamena.  Ministry of Commerce (2006), 
Programme d'action en faveur d es pays les moins avancés pour la 
décennie 2001-2010 - Rapport d'évaluation  (Programme of action for the least developed countries 
for the decade 2001-2010 - Assessme nt report), January, N'Djamena. 
 Ministry of Planning, Development and Cooperation (2003a), 
National Poverty Reduction Strategy 
Paper .  Consulted at:  http://povlibrary .worldbank.org/files/Chad_PRSP.pdf. 
 
Ministry of Planning, Development and Cooperation (2003b), Note de présentation du mécanisme de 
fixation du prix d'achat  du coton au producteur  (Memorandum on the mechanism for determining the 
purchase price of cotton for producers), N'Djamena.  Network of Regional Market Information Systems and Traders' Organizations of West Africa, 
Mistowa (2005), 
Regional Atlas of Transport and Tel ecommunications in the ECOWAS Zone .  
Consulted at:  http://www.oecd.o rg/dataoecd/6/37/35183462.pdf. 
 United Nations, Department of Economic and Social  Affairs, Division for Sustainable Development 
(undated), 
Integrated plan for Chad's wat er development and management (SDEA) .  Consulted at:  
http://www.un.org/esa/sustdev/tech_coop/sd ea/english/pdf/01_Summa ry_Conclusions.pdf 
[25 July 2006].  WT/TPR/S/174 Trade Policy Review 
Page 78 
 
 
New Partnership for Africa's Development, NEPAD (2001), The New Partnership for Africa's 
Development (NEPAD) , October. Consulted at: http ://www.un.org/africa/osaa/reports/ 
nepadEngversion.pdf.  
World Trade Organization, WTO (2004), 
Trade Policy Review – Benin, Burkina Faso and Mali , 
Geneva.  WTO (2006), 
Trade Policy Review – Republic of the Congo , Geneva. 
 
Performances Management Consu lting and European Centre for Development Policy Management, 
ECDPM (2006), Diagnostic institutionnel, fonctionnel et organisationnel de la CEMAC  (Institutional, 
functional and organizational audit of the CAEMC), Vo l. I, Final Report, February.  Consulted at:  
http://www.dgroups.org/groups/CoOL/docs/CEMAC-Institutional_Audit-ECDPM-Evaluation_ 0206.pdf.  United Nations Development Programme, UNDP (2005), 
Document de programme de pays pour le 
Tchad (2006-2010)  (Country programme document for Chad).  Consulted at:  
http://www.undp.org/rba/docs/CPD -CHD%2006-10% 20-%20F.pdf. 
 World Food Programme, WFP (2006), 
An Assessment of Knowledge about Trade and Markets 
Related to Food Security in West Africa , May.  Consulted at:  http://www.fews.net/resources/ 
gcontent/pdf/1001068.pdf [4 September 2006]. 
 Republic of Chad (2003), 
Rapport sur l'exécution de la loi de finances - Budget 2002  (Report on 
enforcement of the Finance Law - Budget 20 02).  Consulted at:  http://www.coursupreme-
tchad.org/site/pics/EXECUTIOND UBUDGET2002.pdf [26 June 2006]. 
 
Republic of Chad (2004), Rapport sur le projet de loi de finances - Exercice 2005  (Report on the draft 
finance law - financial year 2005), Dece mber.  Consulted at:  http://www.tchad-
gpmps.org/BUDGET2005.doc [10 July 2006].  Republic of Chad (2005), 
Plan d'actions pour la modernisation des finances publiques  (Action plan 
for the modernization of public finances), Ju ly.  Consulted at:  http://www.dgitchad.org/ 
plan%20version%205%20vis%e9e.pdf.  Executive Secretariat of the Economic and M onetary Community of Central Africa (2004), 
Compagnie Communautaire Air CEMAC  (CAEMC community airline), Background note, January. 
Consulted at http://www.izf.ne t/IZF/Documentation/J ournalOfficiel/Afrique Centrale/2004/Air_ 
CEMAC.htm.  CAEMC Executive Secretariat (2005), 
Rapport d'activités de la première étape du processus 
d'intégration économique de la CEMAC (1999-2004)  (Activity report for the first stage of the 
CAEMC economic integration process (1999-2004)).  Bangui. 
 
Transparency International (undated), Corruption Perceptions Index 2005 .  Consulted at 
http://ww1.transparency.org/cpi/2005/dnl d/media_pack_en.pdf [7 August 2006]. 
 West African Economic and M onetary Union, WAEMU (2005), 
Lettre du Programme Qualité 
UEMOA  (WAEMU Quality Programme newsletter), Quarterly newsletter No . 6, June-August.  
Consulted at:  http://www.uemoa.int/O NUDI/Bull6.pdf [4 July 2006].